I like the area around Plaza Santa Ana. It is very central, so you can walk to a lot of places and the metro is fairly close. Plaza Santa Ana is a nice place, lined with bars and cafes, fairly laid-back and comfortable, nice atmosphere.

I stayed at the Hotel Vinci Soho, which I really liked:
http://www.vinccihoteles.com/eng/Hotels/Spain/Madrid/Vincci-Soho

It is a comfortable hotel, nicely decorated, and a couple blocks from Plaza Santa Ana in one direction and a couple blocks from the Prado and Thyssen museums and the botanical gardens in the other. There are 3 or 4 metro stops all within about a 4 or 5 block radius, so you can get just about anywhere you want in Madrid very easily.

I definitely wouldn't stay at the Hilton - that is out by the airport, right? You don't want to commute into Madrid all the time, ESSPECIALLY on your honeymoon. Stay in central Madrid.

Hotels near Plaza Santa Ana (google map)
http://goo.gl/maps/Nt6L

Definitely stay somewhere within the city in some reasonable are to get around to see and do thing. I like the hotel Intur Palacio San Martin, beautiful and a super convenient location near the Opera, Puerta del Sol, metro stops, and the Gran Via.
http://www.hotelpalaciosanmartin.es/

I also like the Intur Palacio San Martín. I've stayed at the Hotel Europa, which I also liked, but the San Martín is a little more upscale.

Yes, definitely stay somewhere withing walking distance to the Plaza Mayor, as everything you'll want to see is within walking distance. We stayed in a lovely hotel (Hotel Pio)but it required a 15 minute bus ride into the Plaza area. That's not a big deal, except when you want to siesta in the afternoon.

Another case for staying close to the center of things - in addition to the afternoon siesta, Spaniards eat supper late so you are likely to be out pretty late most nights, even if you aren't typically into the nightlife. If you are interested in nightlife, then you'll be out even later. So that siesta can be important to rest up after a day of sightseeing before going back out again (you'll be hard-pressed to find a decent supper before 9pm), and that commute back to the hotel after dinner will seem longer and longer each time if you stay far from the center of things.

Once when I was in Madrid for work, my collegues and I stayed near our partner office, which was way outside the city center. Of course we went to central Madrid every evening after work because there was nothing in our neighborhood to write home about. And yes, the commute back was seriously tiresome.

Plaza Santa Ana is an excellent location. Take a look at Room Mate Alicia, it is a little hipper than the others but not overly expernsive.

I like staying in the Plaza del Sol. It is a pedestrian only (for the most part) zone that is centrally located.

Easy walk to the Plaza Mayor, and down to the museums.

By all means, check out the CAPAS SESEÑA, a famous cape shop near the Plaza del Sol. http://www.sesena.com/en/

A lot of famous people have bought capes there, and the price, though not cheap, is not too bad for a unique clothing attribbute. My wife loves hers.

Try http://www.venere.com/spain/madrid/ for hotels in Madrid. Filter by both the number of stars and the area you want to stay in. It seems that the economic crisis has hit hotel pricing in Spain, as it did with Portugal. You can find some very nice 4 star hotels for under $100 a night.

I like to use www.trivago.es or www.kayak.com then check hotel website itself. Keep eye open on travelzoo.com and travelzoo.es for some pretty amazing deals when they have them.

Priceline bidding is not good for Madrid, IMHO. Hotwire CAN be OK. You will need to decipher hotels at www.betterbididding.com and their hotwire hotel list.

I'm loving these good recommendations myself as I'm going back to Madrid in a couple months and am looking to see if I want to try some place other than the San Martin this time, just for a change. The San Martin is within a short walk to Plaza Mayor, also.

Over four trip to Madrid during the past ten years, we always stay at Hotel Europa, right on Puerta del Sol, the heart of Madrid. We prefer the front of the hotel with the French balconies so we have overlook the street and the del Sol. However, it can be a little noise if you do not adopt the local time schedule. The back rooms are very quiet - or so we have been told.

I can never understand these sort of hotel questions when no buget is mentioned! Also if you check the OP he has asked about Barcelona Paris and now a honeymoon in Madrid....................?
These answers fall under the heading "My favorite hotels in Madrid"!

good point chapala.

Yeah, I was sort of wondering about budget too.

Apropos of budgets:If you can afford it stay at the Ritz. Great hotel

Sometimes it seems like a little elf is making up complicated screen names and asking questions just to get things rolling.

well, lots of people do ask questions about hotels on here without naming a budget (in fact, many people do), and lots of people do visit several cities on a honeymoon, so nothing about that strikes me as odd per se

Of course, people could make better suggestions if they knew the budget, always. I presumed mid to upper for a honeymoon, especially given the reference to Hilton (which I thought was maybe due to having some hotel points or just being comfortable with that brand, quien sabe)

Oh Christina, the OP will never be heard from again.....!

Nothing wrong with a question that asks for "my favorite hotels in Madrid". I find answers like that very useful myself. I can always check out the prices for myself by looking at the hotel's website after seeing the ones people recommend. I might spend more for a hotel that looks particularly nice for whatever reason, or I might spend less if I find an appealing one that is a particularly good value.

I have only stayed in two hotels in Madrid, but I really enjoyed the Room Mate Alicia on Plaza Santa Ana.

There are comprehensive reviews and suggestions in Maribel's guide to Madrid at www.maribelsguides.com

Nikki-the OP asked for recommendations not favoite hotel in Madrid!
Maribel's guides are outdated when it comes to prices but you cam go to the hotel web site!

Lol. Thank you all for your wonderful suggestions and it truly is helpful to have people who have been there and know a bit about the place to provide suggestions. To clarify some people's posts we are actually goin to Madrid, Barcelona, and Paris on our honeymoon. And i've already booked hotels in Barcelona and Paris, but wanted to get some recommendations in Madrid. So to the people who responded with suggestions, Thank You. On another note i think i would like to keep the hotel price in Madrid around $125-150 bucks a night.

We have stayed (two trips most recently in May) at the Hostal Acapulco, about three very short blocks north of Sol...an excellent location.

It is inexpensive but the rooms are beautiful, the bathrooms up-to-date, and the people friendly and helpful.

There is no restaurant and they only take cash...but who cares?...you're in central Madrid and there are restaurants and ATMs everywhere.

The one issue was that their website was always "under construction"...all transaction had to be by email...but I just checked...they finally really have one!

http://www.hostalacapulco.com/

SS

Could you find prices on that website?

I have also stayed at the Hostal Acapulco after reading an excellent recommendation here back in 2009 and then seeing good reviews on TA, and I am going back in November....I don't remember that they didn't take credit cards - I thought they did, ssander....and right, they now have a website.

lincasanova-you're right,what kind of website is that with no prices!
I wouldn't stay in that area anyway-behind the Corte Ingles on Preciados and one block over from C/Montera!